The central bank chosen for this report is the Reserve Bank of Australia RBA For this assignment, you are required to prepare a report. Your report must address following: 1. Discuss the role of a central bank in a country, particularly in implementing monetary policy. Comment on any regulatory requirements imposed on the central bank in performing their responsibilities. 2. Comment on the current economic environment (inflation and interest rates) of your selected country, monetary policy employed by the central bank, and effects of those monetary policies on financial markets including asset values and yields. 3. In the article the Reserve Bank of Australia Governor states (Greber & Shapiro 2016): I would have the central bank take a medium term view, try and achieve the CPI inflation target over the medium term, and take a very careful note of the asset prices and particularly the leveraged dynamics if they’re there because it’s the leverage that matters. 4. Discuss why the Reserve Bank of Australia Governor thinks leverage matters. What relevance does this statement have to central bank practice in your country? 5. Identify and discuss how Authorised Deposit Institutions (ADIs) deal with credit, liquidity, operating and interest rate risks in the selected country. Comment on how the Basel Accords help deal with these risks.